2. Productivity is how effectively inputs are converted into outputs. Labor productivity can be improved by improving quality of labor. It can also be improved by increasing the capital-to-labor ratio. In order for countries to improve labor productivity they must not only expand the quantity of their labor force, but also the quality of labor to ensure that economic growth exceeds population growth. An investment in human capital is an improvement to the labor force. It is from investments in skills, knowledge, and the overall quality of workers and their productivity, or human capital. By investing in human capital, nations can raise their growth rates by improving worker productivity.
3. Governments use research centers in order to help build technology and ideas. In addition to running research centers, the government provides funds directly to public and private research centers. The government maintains its mission of promoting research essential for a nations economic health and global competitiveness.
4. A stable financial system is essential for economic growth. This system keeps the purchasing power of the currency stable. It also facilitates transactions, and permits credit institutions to arise. Because of financial instability recently, the global financial system was in turmoil. These problems would be less likely to happen when the